FXstreet.com (Barcelona) - The U.S. housing slump does not seem to find a bottom, housing starts and building permits are going through an endless period of consecutive declines, and each month the drop is larger than the month before.

Housing starts have posted a 15.5% month on month decline in December, when analysts had advanced a decline of around 5%. In December the annual seasonally adjusted rate of 550,000 units down from upwardly revised 651,000 units in November.

The outlook for the construction sector in the coming month does no give reasons for celebrations, as building permits, a forward looking indicator for construction activity, have dropped 10.7% to 549,000 annual rate, down from 615,000 annual rate in November.

The year on year declines are indicative of the crisis the housing sector is experiencing, building permits have declined 50.6% year on year, while housing starts have dropped 45.0% since December 2007.